Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
1PT Merdeka Copper Gold Tbk.
Indonesia’s Next World Class Mining Company
March 2016
Tujuh Bukit Oxide Heap Leach Project Update
2PT Merdeka Copper Gold Tbk.
Disclaimer
PT Merdeka Copper Gold Tbk (“PT MCG”) make no representation or warranty (express or implied) as to the accuracy, reliability orcompleteness of the information. All statements in this document, other than statements of historical facts that address future timings,activities, events and developments that the Company expects, are forward looking statements. Although PT Merdeka Copper Gold, itssubsidiaries, officers and consultants believe the expectations expressed in such forward looking statements are based on reasonableexpectations, investors are cautioned that such statements are not guarantees of future performance and actual results or developments maydiffer materially from those in the forward looking statements. Factors that could cause actual results to differ materially from forward lookingstatements include, amongst other things commodity prices, future technical assessments foe mine developments, continued availability ofcapital and financing, timing and receipt of environmental and other regulatory approvals, and general economic, market or businessconditions. PT MCG and its directors, employees, agents, advisers and consultants shall have no liability (including liability to any person byreason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of,contained or derived from, or for any omissions from this document. The information disclosed relates to the proposed business of PT MCGat the date of this document.
Neither the provision of this document nor any information contained in this document or subsequently communicated to any person inconnection with this document is, or should be taken as, constituting the giving of investment advice to any person.
By accepting this document you acknowledge and agree to be bound by each of the foregoing statements.
PT Merdeka Copper Gold - Tujuh Bukit Project Resources
H & S Consultants Pty Ltd: The information in this document that relates to Mineral Resources at Tujuh Bukit Project is based on informationcompiled by Mr Robert Spiers of H & S Consultants Pty Ltd, who is a full time employee in the mining industry and has sufficient experiencewhich is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify asa Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources andOre Reserves, “The JORC Code”.
PT Merdeka Copper Gold - Tujuh Bukit Project Reserves
CSA Global Pty Ltd: The information in this document that relates to Mineral Reserves at Tujuh Bukit Project is based on informationcompiled by Ms Joan Bath of CSA Global Pty Ltd, who is a full time employee in the mining industry and has sufficient experience which isrelevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and OreReserves, “The JORC Code”.
3PT Merdeka Copper Gold Tbk.
Preamble
PT Merdeka Copper Gold Tbk. is pleased to provide an update of the Tujuh Bukit
Oxide Heap Leach Project (the Project), currently under construction in Banyuwangi,
East Java, Indonesia.
This update contains key information drawn from the initial Definitive Feasibility Study
(DFS, 2014) and subsequent Optimisation Study Updates (2015) as well as a
description of current Project progress.
4PT Merdeka Copper Gold Tbk.
Table of Contents
02 Mineral Resource
& Ore Reserve
Estimates
04 Infrastructure &
Facilities
01 Key Findings of
The Project
Studies
03 Capital &
Operating Costs
05 Metallurgy & Ore
Processing
06 Financial
Evaluation
5PT Merdeka Copper Gold Tbk.
Key Findings of The Project Studies
• Project is based on a well-defined JORC 2012 compliant Mineral Resource estimated to
contain 2.2 million ounces of gold and 74 million ounces of silver
• Ore Reserve totals 36 million tonnes of ore from 5 open pits at average grades of 0.91g/t
gold and 21g/t silver*
• Mine life of over 9 years producing approximately 840 thousand ounces of gold and 2.7
million ounces of silver
• First quartile cash operating costs of $457per ounce (after silver credits) driven by a low
strip ratio (0.6:1), robust recoveries (79% life of mine for gold, 82% average for gold oxide
ore), competitive power costs and robust mining contractor costs
• Initial Capex less than $130M (including 10% contingency) and Life of Mine Capex total is
$163M
• Results in strong financial outcomes with 50% IRR, US$254m NPV(5) and an after tax
payback from first production of 1.9 years (assumes $1250/oz gold and $15/oz silver at a
post-tax discount rate of 5%)
• Project is fully financed and all major government permits are in place, including;
Environmental and Social (known as AMDAL) and Forestry Use (known as the Pinjam
Pakai)
• Construction is progressing well and first gold pour is expected in late Q4 2016
____________________________________________* Refer Competent Person’s Statement on www.merdekacoppergold.com
6PT Merdeka Copper Gold Tbk.
Table of Contents
02 Mineral Resource
& Ore Reserve
Estimates
04 Infrastructure &
Facilities
01 Key Findings of
The Project
Studies
03 Capital &
Operating Costs
05 Metallurgy & Ore
Processing
06 Financial
Evaluation
7PT Merdeka Copper Gold Tbk.
Mineral Resource & Ore Reserve EstimatesResource & Reserve Estimates
• The Tujuh Bukit Oxide deposits are classified as High Sulphidation Epithermal (HSE) type
containing economic accumulations of gold and silver.
• They are related to, but spatially independent of the underlying Tujuh Bukit Porphyry Copper
Gold deposit, which has an Inferred Resource estimate of 1.9Bt @ 0.5% copper and 0.5g/t
gold.*
____________________________________________* Refer Competent Person’s Statement on www.merdekacoppergold.com
Classification Tonnes
(MT)
Gold
(g/t)
Silver
(g/t)
Gold
(koz)
Silver
(Moz)
Measured 42 0.93 29 1,260 39
Indicated 29 0.61 23 570 21
Inferred 18 0.65 24 370 14
Total 89 0.77 26 2,200 74
Classification Tonne
s (MT)
Gold
(g/t)
Silver
(g/t)
Gold
(koz)
Silver
(Moz)
Proved 28 0.96 22 850 20
Probable 8 0.75 17 200 4
Total 36 0.91 21 1,050 24
Tujuh Bukit Oxide Mineral Resource Estimates
(0.3g/t Au cut-off grade)
H&S Consultants, February 2015
Tujuh Bukit Oxide Ore Reserve Estimates
(0.2g/t Au cut-off grade)
CSA Global, October 2015
8PT Merdeka Copper Gold Tbk.
Table below will show the details the Ore Reserve into each of the 5 planned open pits
Mineral Resource & Ore Reserve EstimatesTujuh Bukit Oxide Physicals by Pit
Pit Ore
(Mt)
Gold
(g/t)
Silver
(g/t)
Waste
(Mt)
Strip
Ratio
A 18.0 0.8 16 5.6 0.3
B East 1.0 2.8 2.3 2.9 2.9
B West 5.7 1.3 17 6.0 1.1
C 9.7 0.7 35 6.6 0.7
E 1.3 1.20 14 1.0 0.7
Total 35.7 0.9 21 22.1 0.6
9PT Merdeka Copper Gold Tbk.
Table of Contents
02 Mineral Resource
& Ore Reserve
Estimates
04 Infrastructure &
Facilities
01 Key Findings of
The Project
Studies
03 Capital &
Operating Costs
05 Metallurgy & Ore
Processing
06 Financial
Evaluation
10PT Merdeka Copper Gold Tbk.
Capital & Operating CostsCapital Costs
Item US$ Million
Pre-Production Direct Capital 87.0
Owners Costs 30.9
Contingency 11.8
Total Initial Capital 129.7
Sustaining Capital 30.2
Contingency 3.0
Total Sustaining Capital 33.2
Total Project Capital 162.9
Capital Cost Summary
Capital Item Cost US$ Million
Initial Infrastructure 9.3
Roads, Dams, Camps 13.0
Pre-Mining Opex & First Fills 11.3
Crushing (P100@75mm) 8.7
Agglomeration & Water 4.7
Heap Leach Pad & Ponds 11.2
ADR Plant & Other Infrastructure 21.1
Power Supply & Distribution 7.7
Total Pre-Production Capital 87.0
Pre-Production Direct Capital Summary
Initial Project capital costs including
owner’s costs and a 10% contingency
are estimated at US$129.7 million.
Life of Mine (LOM) Project capital costs
are estimated at US$162.9 million.
The Pre-Production Direct Capital
Summary are estimated at US$87
million.
11PT Merdeka Copper Gold Tbk.
Capital & Operating CostsOperating Costs
• Life of mine operating costs are projected to total US$410 million being equivalent to US$ 488
per ounce (recovered, before silver credits) or US$ 11.46 per tonne ore placed on the leach
pad.
• Operating costs incurred prior to the start of mining have been capitalised.
US$M Operating per BCM mined
(ore+waste)
per t mined
(ore+waste)
per t ore per oz Au *
MINE 189 7.11 3.25 5.27 224.52
PROCESSING 151 5.69 2.60 4.22 179.72
ADMINISTRATION 44 1.64 0.75 1.22 51.87
NON PRODUCTION 27 1.01 0.46 0.75 31.84
TOTAL OPERATING COST 410 15.46 7.06 11.46 487.95
* Note: does not include silver by-product credits
Operating Costs - Life of Mine
12PT Merdeka Copper Gold Tbk.
Table of Contents
02 Mineral Resource
& Ore Reserve
Estimates
04 Infrastructure &
Facilities
01 Key Findings of
The Project
Studies
03 Capital &
Operating Costs
05 Metallurgy & Ore
Processing
06 Financial
Evaluation
13PT Merdeka Copper Gold Tbk.
Infrastructure & FacilitiesKey Areas of Infrastructure
ORE PREPARATION PLANT
(OPP)
•OPP has been selected in a location outside the blast zone and adjacent to the Mine Haul Road. The OPP consolidates infrastructure into a common area to minimise trucking and rehandle and to take advantage of the site topography. The following infrastructure is consolidated in the OPP:
•ROM Pad;
•Two stage crushing circuit and screens;
•Drum agglomeration circuit including radial stacker, agglomerate stockpile and load-out facility; and
•Support buildings.
HEAP LEACH FACILITIES
•The Heap Leach Facility (HLF) layout includes:
•heap leach pad;
•pregnant pond
•ILS pond;
•stormwater pond
•raw water dams; and
•environmental control dams.
POWER SUPPLY
•Government Electricity Company(Perusahaan Listrik Negara - PLN)maintains an integrated 500 KV supplyand transmission network across Java.A 150 KV substation is located atGenteng approximately 36 km from theProject.
•A dedicated PLN GARDU (substation)will be installed at the junction of thepublic road and the Project’s SAR (SiteAccess Road).
•The company will also install dedicatedswitchgear in this vicinity with the onsite20kV overhead line commencing at thispoint and distributing to the variousProject facilities such as the ProcessPlant, the OPP, Dams, MIA, Magazines,and Camp.
•Purchase and installation of arefurbished or new diesel firedgenerator, as backup to the PLN 20kVpower supply, are required. Thegenerator will only supply backup powerfor the operation of the process plant(including Detox), heap leach pad andponds, and dams for continuity ofoperations especially during the wetseason.
14PT Merdeka Copper Gold Tbk.
Infrastructure & FacilitiesProject General Arrangement Diagram
15PT Merdeka Copper Gold Tbk.
Table of Contents
02 Mineral Resource
& Ore Reserve
Estimates
04 Infrastructure &
Facilities
01 Key Findings of
The Project
Studies
03 Capital &
Operating Costs
05 Metallurgy & Ore
Processing
06 Financial
Evaluation
16PT Merdeka Copper Gold Tbk.
Metallurgy & Ore ProcessingGold & Silver Extractions
• Gold extraction from the ore types at Tujuh Bukit have been shown to be relatively insensitive
to crush size in bottle roll and column leach test-work up to a crush size of 75mm. The
selected process option consists of:
– Two-stage open circuit crushing to a P100 of ~75mm;
– Cement agglomeration; and
– Truck stacking.
• Table below presents the ranges of expected gold and silver recoveries for oxide and
transition ores for the selected process option. It should be noted that the Pit E oxide ore and
some of the deeper, more silicified Pit A ores are not expected to leach quite as well as the
rest of the ores at the selected crush size distribution.
Ore Type
Gold Extraction Range Silver Extraction Range
Lower UpperEconomic
AverageLower Upper
Economic
Average
Oxide 77.0 91.0 82.5 3.0 26.0 12.0
Transition 40.0 59.0 50.0 5.0 45.0 16.0
Expected Gold and Silver Extractions at P100 75mm Size
17PT Merdeka Copper Gold Tbk.
Metallurgy & Ore ProcessingExpected Field Leach Performance
Figure below presents expected field leach performance employing a simple open circuit
crushing plant (P100 ~75mm). Leach kinetics indicate 50% to 80% extraction of gold from oxide
ores in 30 days of field leaching, or over 75% of final extraction within this time frame.
Range of Expected Field Leach Curves for Oxide Ores at P100 75mm Crush Size
18PT Merdeka Copper Gold Tbk.
Metallurgy & Ore ProcessingExpected Reagent Consumptions
The expected reagent consumptions for the Tujuh Bukit oxide and transition ores at the two size
distributions evaluated are presented in Table below.
Ore TypeNaCN, kg/t Hydrated Lime, kg/t Cement, kg/t
Min Max Avg Min Max Avg Min Max Avg
Oxide 0.20 0.60 0.35 0.01 0.04 0.02 3.0 8.0 4.5
Transition 0.40 1.20 0.70 0.05 0.20 0.10 3.0 6.0 3.5
Projected Gold Extraction by Orebody at 75mm Size
19PT Merdeka Copper Gold Tbk.
Metallurgy & Ore ProcessingReport
• The plant and project design processing rate is 4.0 million tonnes per annum (Mtpa) of oxide and transition
ore over a 9-year project life for a total leach pad capacity approaching 36 Mt of gold and silver ore stacked
by truck.
• The ore will be stacked in nominal 10m lifts, with cell widths between approximately 50m to 70m. Cells will
be irrigated using a repetitive 7m x 7m irrigation pattern over a 75-day primary (oxide and transition) leach
cycle using Intermediate Leach Solution (ILS), with a further 75-day (105-day for sulphide) period of
secondary leaching with Barren Leach Solution (BLS) under the same irrigation pattern before the next lift is
stacked over. The leachate solution will percolate through the ore before sub-grade collection and drain via
flumes to either the (low gold grade) ILS pond or (high gold grade) Pregnant Leach Solution (PLS) pond.
PLS solution is then pumped to the Adsorption Desorption Refining (ADR) process plant for gold and silver
recovery.
• Gold and silver doré will be recovered from solution using conventional split AARL elution/electrowinning
and smelting technology. Dore gold will be consolidated on-site for shipment to Jakarta for refining at PT
Logam Mulia Smelting and Refinery at Pulo Gadung, East Jakarta.
• During high rainfall events, leach pad diversion drainage and excess PLS and ILS leach solution will be
captured and stored in the stormwater pond. The diluted leachate solution in the stormwater pond will
contain levels of cyanide, arsenic and various other dissolved metals above the nominated discharge limits.
Excess water will be treated to remove cyanide and metals prior to offsite discharge.
20PT Merdeka Copper Gold Tbk.
Metallurgy & Ore ProcessingFlow Sheet for Heap Leaching
21PT Merdeka Copper Gold Tbk.
Table of Contents
02 Mineral Resource
& Ore Reserve
Estimates
04 Infrastructure &
Facilities
01 Key Findings of
The Project
Studies
03 Capital &
Operating Costs
05 Metallurgy & Ore
Processing
06 Financial
Evaluation
22PT Merdeka Copper Gold Tbk.
Financial Evaluation
• The financial viability of the Tujuh Bukit Heap Leach Project has been assessed using the Discounted Cash
Flow (DCF) methodology which considers project cash-flows and the time-value of money.
• The cash flows are based on constant dollar assumptions for costs and revenues and a long term gold price
of $1,250 per oz. Cash flows are calculated on an after tax basis and discounted at a rate of 5%.
• The model is unleveraged with all outputs in US dollars.
• Gold and silver pricing used in the latest financial evaluation were US$ 1,250/oz and US$ 15/oz.
• Results of the DCF analysis are outlined in Table below and confirm that the Project is very robust.
US$ million
Sales Revenue 1,043.9
Operating Costs -409.7
Capital expenditure -162.9
Tax Paid -123.6
LOM Project Cashflow 350.5
Average Annual Free Cashflow (in production) 46.9
NPV (5%) 254.3
IRR 50%
Return On Net Assets 46%
Payback from First Production 1.9 yearsDCF Analysis Summary
23PT Merdeka Copper Gold Tbk.
Indonesia’s Next World Class Mining Company
Board of Commissioners and Board of Directors
November 2015
PT MERDEKA COPPER GOLD TBK
International Financial Centre, 12A Floor
Jl. Jend. Sudirman Kav. 22-23
South Jakarta – 12920
Telephone: (+62 21) 2941 0806
Facsimile: (+62 21) 2941 0807
For further information, please contact the following email: